28 Jun 2017

Mukesh Ambani keeps pay capped at Rs15 crore for 9th year in a row

Mukesh Ambani has kept his salary, perquisites, allowances and commissions capped at Rs15 crore since 2008-09, forgoing almost Rs24 crore per annum

Reliance Industries Ltd chairman and managing director Mukesh Ambani. Photo: Mint

Mumbai: The annual salary for India’s richest man, Mukesh Ambani, remained capped for the ninth consecutive year at Rs15 crore for fiscal year 2017, while Ambani gave the top brass a pay hike. 

Ambani, the 20th richest person on the planet with a net worth of $31.3 billion, was ranked at number 33 with a fortune of $23.2 billion in the Forbes 2017 Billionaires List, which was published this March. Till 2016, Ambani's net worth was $19.3 billion and was ranked 36 worldwide the Forbes annual ranking for 2016. 
Ambani has kept his salary, perquisites, allowances and commissions capped at Rs15 crore since 2008-09, forgoing almost Rs24 crore per annum. 

“The chairman and managing director’s compensation has been set at Rs15 crore as against Rs38.75 crore as approved, reflecting his desire to continue to set a personal example for moderation in managerial compensation levels,” RIL said in its annual report for 2016-17 released on Wednesday. 

Ambani had in 2009 voluntarily capped his compensation at Rs15 crore. Till 2007-08, Ambani was the top-paid executive in India with an annual compensation package of Rs44 crore.

The CMD’s annual take-home pay included Rs4.16 crore as salary, Rs60 lakh in perquisites and allowances, Rs71 lakh toward retirement benefits and Rs9.53 crore as commission on profit. He did not avail of the stock options. 

Executive directors on RIL’s board, however, saw their remunerations go up. The compensation of Ambani’s cousins Nikhil R. Meswani and Hital R. Meswani rose to Rs16.58 crore each against Rs14.42 crore and Rs14.41 crore, respectively, in 2016. In 2014-15, they got Rs12.03 crore. 

P.M.S. Prasad, another executive director on the board, saw his compensation go up to Rs7.87 crore from Rs7.23 crore last year. 

Ambani’s wife Nita Ambani, who joined the RIL board as a non-executive director in 2014, earns Rs1.39 crore in sitting fee and commission, according to the annual report. 

Other than Nita Ambani, other non-executive directors include Dharam Vir Kapur, Dipak C. Jain, Mansingh L. Bhakta, Yogendra P. Trivedi, Raminder Singh Gujral, Ashok Misra, Raghunath A. Mashelkar and Adil Zainulbhai. 

In his address to the shareholders, Ambani said, “I am happy to report that we have delivered superior financial performance, improved capital efficiency and continued strong project execution. Our financial and operational performance in FY2016-17 was outstanding, reflecting in record net profit.”
Source - Live Mint

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